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Reverse Mortgage Calculator

Estimate how much a reverse mortgage can provide — lump sum or monthly lifetime payments — based on your home equity, age, and current interest rates.

Updated June 2026 · Editorial standards

Your home details

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$
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HECM 2024 Lending Limit: $1,149,825

Max claim amount: $450,000 · Principal limit factor: 48.2%

Net proceeds (lump sum)
$119,675
Monthly tenure payment· lifetime
$853
Principal limit
$216,675
Total upfront costs
$17,000

At age 70 with a $450,000 home, you qualify for up to $119,675 net proceeds — or $853/month for life.Upfront costs: $9,000 MIP + $6,000 origination fee + $2,000 closing = $17,000 total. You retain $233,325 in home equity after the principal limit is set.

Where the home value goes

Upfront cost breakdown

Upfront MIP (2% of max claim)$9,000
Origination fee$6,000
Estimated closing costs$2,000
Existing mortgage payoff$80,000
Net to you$119,675
By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the reverse mortgage calculator?

In short

A reverse mortgage (HECM) lets homeowners 62+ convert home equity into cash without monthly payments. At age 70 with a $450,000 home and $80,000 existing mortgage, you may access approximately $148,000 net — or $862/month for life. No repayment is due until you sell, move out, or pass away.

Estimates your HECM reverse mortgage principal limit, net lump-sum proceeds, monthly lifetime tenure payment, and a full upfront cost breakdown (MIP, origination fee, closing costs) based on home value, existing mortgage, age, and expected interest rate.

How to use this calculator

  1. 1Enter your home's current estimated market value.
  2. 2Enter any existing mortgage balance (will be paid off from proceeds at closing).
  3. 3Enter the age of the youngest borrower (must be 62+).
  4. 4Enter the current expected interest rate (typically 10-year CMT + 1.5%; check with a HUD-approved counselor for the exact rate).

The formula

MCA=min(home value,$1,149,825)
principal limit=MCA×PLF
net proceeds=PL−mortgage−costs
Principal Limit = min(home value, $1,149,825) × PLF. PLF increases with borrower age and decreases as interest rates rise. Net proceeds = Principal Limit − existing mortgage − upfront costs (MIP + origination fee + closing costs).
MCA
— Max claim amount (min of home value and $1,149,825 HECM limit)
PLF
— Principal limit factor (increases with age, decreases with higher rates)
PL
— Principal limit = MCA × PLF

Worked example

The scenario

Age 70, $450,000 home, $80,000 existing mortgage, 6.5% expected rate.

gives

The result

Max claim: $450,000 × 54.2% PLF = $243,900 principal limit. Upfront costs: $9,000 MIP + $5,739 origination + $2,000 closing = $16,739. Net proceeds: $243,900 − $80,000 − $16,739 = ~$147,161. Monthly tenure: ~$853/month for life.

Common use cases

  • Supplement retirement income without selling your home or making monthly payments.
  • Pay off an existing mortgage to eliminate housing payments entirely.
  • Fund home renovations, medical expenses, or long-term care costs.
  • Establish a growing line of credit as a financial safety net.

Limitations & assumptions

  • Estimates use simplified PLF approximations; actual PLFs from a lender will differ based on HUD tables.
  • Ongoing annual MIP (0.5% of outstanding balance) accrues on the loan and reduces remaining equity.
  • If the borrower leaves the home for 12+ months (nursing home), the loan becomes due.
  • Heirs inherit the home subject to the loan balance; they can repay it or sell the home — but the lender cannot collect more than the home's value (non-recourse protection).
  • HUD requires a mandatory counseling session (~$125 fee) with a HUD-approved counselor before you can apply.

Frequently asked questions

The principal limit factor (PLF) determines how much of your home value you can borrow. At 7% expected rate: ~40% at age 62, ~48% at age 70, ~58% at age 80. On a $400,000 home at age 70, that's ~$192,000 before costs and existing mortgage payoff. Higher age and lower interest rates both increase your proceeds.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.